Jim Toedtma, Editor of the AARP Bulletin, has a really good article for December. He talks about the tremendous amount of money the American people have lost since the housing bubble of 2007. 12.9 trillion In home values have been lost. He goes on to state that 6.7 trillion, about half of the total losses, exceeds the size of the entire Chinese economy or the size of Germany and France’s economy combined.
For many families that vanishing wealth would have been retirement savings, college tuition accounts or a safety net against job losses-or all three.
So how have we Americans responded? His article states that we're saving more now and spending less. In the current recovery, sluggish as it is, people have decided to do two things, save more and pay down old debt
What is the lesson here?
While Congress and the rest of Washington seem to be paralyzed, the American people move forward with a positive personal plan to improve their situation. It's time that Washington took a page from the American people. Look at the situation this country is in. Look at what this country needs to do? Then make the necessary adjustments!!
If the people recognized that they need to toss their credit cards and open up savings accounts and pay down old debts, our leaders should do the same. Jim's final statement in this article is simple. It's a three step recipe - common sense, compromise and simple math.
It's long past time. Our government needs to stop the spending, balance the budget, and close the tax loopholes. Pay attention to the promises that they have made to the American people. Now is not the time for our leaders to bicker like children. We cannot wait another 12 months to get started.
When two people in a household realize that compromise is the only solution, then they can acquire as much as both of them want. How can our government leaders not understand this principle?
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